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A pension plan is obligated to make disbursements of $20 million $3.0 million, and $20 million at the end of each of the next
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A B C D E F G H Year (A) PMT (B) | 1 2 2 3 32 Total PV PV (C) 1.80 2.43 1.46 5.70 Weight (D) 0.3162 0.4272 0.2566 Duration A*

EXCEL FORMULA:

в с о E F Year (A) PMT (B) 3 PV (C) =2/(1+11%) =3/(1+11%)^2 =2/(1+11%)^3 =D3+D4+D5 Weight (D) =D3/D6 =D4/D6 =D5/D6 Duration A

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